Romanian Govt. greenlights new edition of its guarantees program for mortgage loans
Romania’s Government adopted on Wednesday, March 2, the changes to its “New Home” (formerly First Home) program, which offers state guarantees for mortgage loans taken by individuals.
The main change introduced this year is that the beneficiaries are obliged to get an insurance policy against all risks for the whole duration of the loans.
The state guarantees available this year under the program amount to RON 1.5 billion (EUR 300 mln), according to the Finance Ministry, News.ro reported.
The “New Home” 2022 state guarantees are provided for mortgage loans in local currency for the purchase of a single home. The maximum value of the loans that can be accessed under the program is EUR 66,500 - for homes with a maximum price of EUR 70,000 and a 5% down payment - and EUR 119,000 - for homes whose price is between EUR 70,000 and EUR 140,000, in which case the requested advance payment is 15%.
The program was launched in 2009, and the total state guarantees provided since then amounted to RON 29.9 bln (over EUR 6 bln).
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